Romulus, it does indeed look like over wet to me. Is the medium entirely sphag? If so the interior takes a lot longer to dry out than the top, and the roots inside rot and harm the plant even if the aerial roots look dry. My guess would be to repot and loosen the medium; maybe add some bark or charcoal to give air space.
Hopefully someone more phal experienced than I will jump in an give help. Good luck!